CALGARY, Alberta (Reuters) - TransCanada Corp said on
Thursday that plans by a Saskatchewan utility to sell
carbon-dioxide captured from a power plant are no threat to its
own initiative in the Western Canadian province.

John Jenkins, project manager for TransCanada's proposed
C$4 billion ($4.1 billion) Belle Plaine polygeneration
facility, said there are plenty of potential customers for
carbon-dioxide among Saskatchewan oil producers, who pump the
gas into oil fields to boost production.

SaskPower last month unveiled its own plans to add
carbon-equipment to its Boundary Dam coal-fired power plant.
The C$1.4 billion project includes pipelines to carry
carbon-dioxide to oil fields.

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"We don't see any particular conflict," Jenkins said.
"Theirs is a different process, much smaller, and theirs is a
demonstration project while ours is a full-blown industrial
complex."

When complete in 2013, the Belle Plaine plant will burn
low-cost petroleum coke, a waste product from oil sands
upgraders, to produce 300 megawatts of electricity along with
hydrogen, carbon dioxide, steam and other products.

The Belle Plaine plant, which has yet to be given the
official go-ahead by TransCanada, is located 50 kilometers (31
miles) west of Regina, Saskatchewan.